You
are a serious student of calculus in need of some tutoring support. A bit of research provides you with four
possible tutors, all equally qualified, whom you ask for bids for their
tutoring service.
Bob $15.00 per
hour
Mary $12.00 per hour
Sean $10.00 per hour
Lee $8.00 per hour
Would you expect their bids to be the same? Why or why not?
It
is not unreasonable to assume that the four individual tutors had different
costs of production, that is, they had to sacrifice or give up different things.
Does a person with small children have a different opportunity cost
than someone without small children?